A rally in financial stocks carried the benchmark index of the Toronto Stock Exchange higher on Monday, as new surveys revealed heightened optimism on business conditions and the economy.

The S&P/TSX composite index jumped 144.80 points, or 1.5%, to close at 9,891.93. All 10 main groups on the TSX advanced on Monday.

The financials group rallied 2.7%.

Shares of Manulife Financial Corp. surged 4.2% to $20.03 and Sun Life Financial Inc. soared $1.55, or 5.5%, to $29.62.

Shares of Royal Bank of Canada rose 3% to $46.50 and Bank of Nova Scotia’s stock gained $1.02, or 2.5%, to end at $41.49.

Also higher was Toronto-Dominion Bank, up 2.2% to $58.05, and Bank of Montreal, up 2% to end at $46.90.

The materials group gained 1.1% on Monday as gold futures advanced. August gold rose US$10.00, or 1.1%, to end at US$922.50 an ounce on the Comex division of the New York Mercantile Exchange.

The sub-gold index edged up 0.8%.

Goldcorp Inc. shares gained 1.2% to $38.81, and Kinross Gold Corp. closed at $20.95, up 1.3%.

Shares of Teck Resources Ltd. jumped $1.06, or 5.9%, to end at $19.03.

Lower for the day was Potash Corp., down 1.1% to $98.05.

Meanwhile, the energy group rose 1.3% on Monday despite a dip in oil futures. Crude for August delivery fell 20 cents to end at US$59.69 a barrel on the New York Mercantile Exchange.

Shares of Pacific Rubiales Energy Corp. surged $1.15, or 12.3%, to $10.49.

Canadian Natural Resources Ltd. climbed 3.4% to $57.19 and Petro-Canada rose 1.2% to $39.75.

Shares of Niko Resources Ltd. added $1.30, or 1.7%, to finish at $76.31.

The Venture index edged up 2.08 points, or 0.2%, to close at 1,047.63.

The Canadian dollar jumped higher to close at US86.82¢ on Monday, up nearly a cent from Friday’s close.

Stocks in New York also finished with solid gains led by financial stocks on Monday, in advance of upcoming earnings reports.

The Dow Jones industrial average gained 185.16 points, or 2.3%, to 8,331.68.

The S&P 500 Index added 21.92 points, or 2.5%, to close at 901.05.

The Nasdaq composite index rose 37.18 points, or 2.1%, to end at 1,793.21.

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